WT Business Beat

By Nick Wakeman

Blog archive
Nick Wakeman

Tech Data to be acquired in wake of DLT deal

Tech Data has agreed on the sale of itself merely two weeks after announcing its planned acquisition of DLT Solutions to re-enter the federal market.

Clearwater, Florida-based Tech Data is being acquired by private equity firm Apollo Global Management for $5.4 billion.

The acquisition is expected to close in the first half of 2020, but the agreement allows Tech Data to actively solicit other proposals during a “go-shop” period that ends Dec. 9.

At a price of $130-per-share, the deal values Tech Data at a 17-percent premium to its closing stock price on Oct. 15. Reuters reported the next day that Apollo had approached Tech Data with an offer at that price.

Rich Hume will continue as Tech Data's CEO after the deal closes.

What does this mean for the DLT acquisition? Probably not much.

The reasons for Tech Data to purchase DLT haven’t changed just because Tech Data’s ownership has.

Deals like these don’t happen overnight, so Apollo more likely than not knew the DLT deal was in the works.

That said: life could be a little different for DLT under a privately-owned Tech Data than a publicly-traded company. We will have to wait and see.

Posted by Nick Wakeman on Nov 13, 2019 at 9:37 AM


Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More

  • PROJECT 38 PODCAST

    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.